A Shifting Golf Landscape

The golf industry is in the midst of a generational transformation. A sport once associated with exclusivity, rigid formats, and significant time commitments is now being reshaped by a wave of demand for flexibility, accessibility, and community-driven experiences. Leading this evolution is a category that has been historically overlooked: Golf Lite. This segment—comprised of short courses, par-3s, and driving ranges—has emerged as one of the most promising and scalable formats in the game today.

Golf Lite addresses the modern consumer’s desire for shorter play times, more affordable access, and a lower barrier to entry. It embraces the core of golf—skill development, competition, and social connection—while shedding the layers that can make traditional golf feel out of reach for new and casual players.

By contrast, Golf Entertainment, typified by gamified venues like Topgolf and simulator bars, has gained attention for its ability to attract large crowds and generate buzz. Yet beneath the surface lies a fragile business model dependent on novelty, food and beverage revenue, and easy-to-replicate concepts. As the industry matures, Golf Lite’s authenticity, structural moat, and long-term appeal position it as the category best aligned with the sport’s future.

Golf Lite vs. Golf Entertainment: Understanding the Differences

Golf Lite is defined by a “golf-first” ethos. Facilities are designed to prioritize the golf experience, with food and beverage offerings serving as complementary rather than central elements. These venues are optimized for repeat use, skill-building, and habitual engagement. Whether it’s a driving range equipped with ball-tracking technology or a thoughtfully designed par-3 course, Golf Lite caters to players who view golf as both a pastime and a practice.

Golf Entertainment takes the opposite approach. In these venues, the primary draw is the experience itself—often delivered through flashy technology, curated environments, and a heavy reliance on food and drink sales. Golf becomes secondary, serving more as a backdrop for socializing than a focal point of engagement. These businesses thrive on novelty and often attract non-golfers for a single occasion rather than ongoing participation.

The chart below outlines the fundamental differences between the two categories:

Economic Model: Golf Lite vs. Traditional Golf Courses

Golf Lite is not only a strong consumer product—it is a financially compelling one as well. Compared to traditional golf courses, Golf Lite venues are more cost-effective to build, simpler to operate, and capable of producing significantly higher margins.

Consider the economics of a typical 18-hole golf course. These facilities require more than 120 acres of land, 18 to 25 full-time employees, and ongoing expenses for water, chemicals, equipment, and landscaping. Maintenance costs alone can reach $810,000 annually, and the average course generates just $1.08 million in EBITDA. In short, traditional courses are operationally complex and financially fragile.

By contrast, a Golf Lite facility operates on a fraction of the land—typically 10 to 30 acres—and can function efficiently with a team of just 5 to 10 employees. Maintenance costs range between $150,000 and $300,000 annually, and with the addition of ball-tracking technology, memberships, and league play, these venues can generate EBITDA margins as high as 40%. The table below summarizes the key differences:

The Golf Entertainment Bubble

While Golf Entertainment venues have played a role in introducing new players to the game, the business model is beginning to show signs of strain. As of 2024, there were over 200 Topgolf-style venues in operation, along with more than 500 simulator bars clustered in major metropolitan areas. In cities like Dallas, Phoenix, and Nashville, it’s not uncommon to find three to five golf entertainment venues within a ten-mile radius.

The rapid expansion of these concepts has led to familiar problems: falling same-store sales, declining retention rates, and fierce competition for customer dollars. For example, 70% of Topgolf customers visit no more than once a year. Simulator bars like Five Iron Golf and X-Golf have seen revenue declines as new entrants crowd the space. Many of these businesses rely on discretionary food and beverage spending, which is particularly vulnerable during economic downturns.

The current saturation of the market mirrors previous trends seen in other entertainment categories. From axe throwing to escape rooms to virtual reality cafés, the arc is familiar: a surge in popularity, followed by overexpansion, and then a rapid contraction as novelty fades and margins collapse.

Traditional Course Acquisitions: A Market at Its Peak

Parallel to the issues in Golf Entertainment is the overheated market for traditional “green grass” course acquisitions. Investors have flooded into the space over the past five years, driving up valuations to historic levels. Courses are now selling for 8 to 12 times EBITDA, and revenue multiples in some markets exceed 3.5x.

These inflated prices mask underlying challenges. Operational costs are high, margins are thin, and many courses are heavily reliant on aging memberships and seasonal revenue. Meanwhile, rising interest rates and tighter lending standards have made debt more expensive, compressing returns for new buyers. The market is bifurcating between a small number of trophy assets and a long tail of underperforming properties.

Why Golf Lite Offers a Superior Investment Profile

In contrast to both Golf Entertainment and traditional course acquisitions, Golf Lite offers a cleaner, leaner, and more future-aligned investment profile. Initial capital expenditures are lower, recurring revenue models are stronger, and demand is growing across every age and income bracket. A modern Golf Lite facility can be developed for just $3 to $5 million and begin generating revenue within months.

Unlike novelty-based models that rely on transient consumer interest, Golf Lite encourages skill development, repeat usage, and community building. It transforms casual players into regular participants, creating long-term customer value that is difficult to replicate in other categories.

The table below summarizes the long-term outlook: